zumodriveOnline file storage startup Zecter, maker of ZumoDrive, has secured a $1.5 million round of lending.

ZumoDrive’s trick is to take a cloud-based storage system and present it as local hardware memory to iPhones and other gadgets. That way, customers’ data is automatically stored and backed up in an online location that will still be available should the gadget get lost, broken or stolen. Moreover, ZumoDrive’s storage space for each customer is unlimited, compared to a local disk or memory card that runs out of room in the middle of, say, taking vacation photos.

There are other companies, most notably Box.net, offering similar services, but no clear leader has emerged. And there’s always the threat that Amazon, Google or another much larger player could steal buzz and customers with a mass-marketed solution. For now, though, there’s still room for innovative startups.

The latest funding comes from new investor Ram Shriram, plus original investors Tandem Entrepreneurs and VeriFone CEO Douglas Bergeron. The Burlingame, Calif.-based company was founded in 2007 with seed funding from Y Combinator.

AI Weekly

The must-read newsletter for AI and Big Data industry written by Khari Johnson, Kyle Wiggers, and Seth Colaner.

Included with VentureBeat Insider and VentureBeat VIP memberships.

Investor Shriram said in a prepared statement, “ZumoDrive has a rapidly growing user base that is already generating strong revenue, so this funding is simply a boost.”

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn More